I have never really thought it through, but just calculated the following
When I started with £50 and 0.1 stake, and because my indicator usually stops me out at 1-1.5 points if it is a failed trade, by default I risk 2-3% of my equity. But when I say that the max stake at this situation can be 0.8 that means at that point I am risking 16-24% with one trade. That could easily lead to catastrophy. To most people it is obvious and clear, and I am and was aware of that too, but when you feel invincible, you don't think it will actually happen. I could say I am an optimist. Maybe more than that. So...
Plans..targets...or whatever:
Decrease my risk. I will still increase my stake carefully, if necessary, but after my 20th day, when base stake will increase to 0.2, my max stake will stay at 0.8. at a £100 it is still 8-12% risk per trade with the highest stake. That is still high but I will further decrease it later. Wouldn't want months of work go to waste in a day, which it can, easily. Besides, even after getting used to the higher stakes bigger losers, a couple hundred pounds of DD would still stop my beating heart if my total equity is only 800-100 pounds.
So, first plan decrease risk as soon as possible.
Be more selective, try to increase winner/loser trade ratio
And, what did I learn to know or to feel or not to feel in the last month?
If I get out of a trade/trend after 5 points and quite happy for it, and the trend goes the same day another 30 points. don't go crazy. I have many times. Now that's the greed I wanted to defeat with this month long exercise.
Funny thing, someone less experienced asked me once but how can I handle this situation? I said, ok you stay in that trade for the whole day and you make 30 points. But if you have this mindset and the trade goes on for a month, you would be cursing again, why you quit (I know I know you can always get in again, but lets assume it is with a size you can not daytrade with)...so, If u stay in it for a month and it goes for a year? It never ends. You have to be happy with what you have taken out, and that you have made money, and if an opportunity presents itself, you can get in on that ride again. No big deal. There will be another day, another week, another trend, another clear good entry, another wave, as long as markets are functioning. Of, course, some want it all TODAY, and ALL OF IT.
That is the subconscious greed and impatience in control, the need for security, survival, some ancient built in programming that is very hard to get over it, but I believe it is possible, with enough willpower, and creating a conscious habit.
Now I know how this whole thing works (for me, maybe not for everybody but certainly for those who have a bit of gambling problem..or had). I know and knew long ago, that this should be changed and how to think about this, but still, when I only scooped out a fifth of a huge move, I used to get a little crazy, and sometimes I have blown my account, simply because I couldn't handle not taking it all.
But, it is time to change. Time to move on. Time to forget the past where I could make my fortune in a day. time to be more patient and careful. Time to make money.
...I just saw..this must be good enough for the 100th post